Chapter 12 Notes v2.docx

4 Pages
95 Views

Department
Business Administration
Course Code
BUS 100
Professor
Kim Milnes

This preview shows page 1. Sign up to view the full 4 pages of the document.
Description
Chapter 12 – Understanding Marketing Processes and Consumer Behaviour What is Marketing? 1) Marketing = planning and executing the development, pricing, promotion, and distribution of ideas, good/services to satisfy both buyers and sellers a) Marketing concept = idea that the whole firm is directed toward serving customers at a profit  (achieving corporate objectives by understanding customer needs and costs of satisfying them, and providing product that best satisfy those needs) 2) Providing Value and Satisfaction a) Value = relative comparison of product’s benefits vs. costs  Benefits include features, but also emotional satisfaction  Costs is price, time, emotional decision b) Utility = ability of a product to satisfy a need 3) Goods, Services, and Ideas a) Consumer goods = products purchased by individuals for personal use b) Industrial goods = products purchases by companies to use directly/indirectly to produce other products c) Services = intangible products (time, expertise…) d) Marketing also promotes ideas 4) Relationship Marketing a) Relationship marketing = a type of marketing that emphasized lasting relationships with customers/suppliers b) It is much cheaper to keep a customer, rather than finding new customers Strategy: The Marketing Mix 1) Marketing managers = managers responsible for planning/implementing all the marketing mix activities a) Culminate in marketing plan – detailed strategy for gearing the marketing mix to meet consumer needs/wants 2) The “Four P’s” of Marketing a) Product, Pricing, Promotion, Place b) Mirror of the buyer’s “four C’s”  Customer solution, Customer cost, Customer convenience, Customer communication c) Product  A good, service, idea that satisfies buyer’s needs and demands  Product differentiation = creation of a product or product image that differs enough from existing products to attract customers d) Price  Part of marketing mix of choosing appropriate price to meet profit objectives  Prices must support manufacturing/admin/research, etc…but must be “buyable” e) Place  Aka distribution = part of marketing mix concerned with getting products from producer to buyer….including physical transportation and sales outlets 1  Aka though which channels a product moves from manufacture  consumer f) Promotion  Part of marketing mix concerned with selection appropiat4e techniques for enticing customer to buy product Target Marketing and Market Segmentation 1) Cannot be everything for everyone a) Target market = group of people who have similar wants/needs, and may be expected to show interest in same products b) Market segmentation = diving market into categories according to traits customers have in common c) Positioning = process of fixing, adapting and communicating the product to specific segments 2) Identifying Market Segments a) Geographic Variables  Geographical units that may be considered in segmentation strategy b) Demographic Variables  Characteristics of populations that may be considered in segmentation strategy  Age, education, family, income, nationality, race, religion, sex, language, etc…  Multicultural marketing = activities directed art various identifiable ethic groups c) Psychographic Variables  Psychological traits that a group has in common, inc. motives, attitudes, activities, interests and opinions  Psychographics are important, for (unlike geo-/demo- graphic) they can be changed with marketing d) Product-Use Variables  How people use the product and what brand loyalty there is  Product positioning = establishment of an easily identifiable image of product in consumers’ minds 3) Market Segmentation: A Caution a) Difficult to always group people, despite –graphic variables  Uni. Profs earn same $$ as truck drivers, but spending is very different b) System of values plays major role in whether adopting new product 4) Targeting Strategy a) Undifferentiated marketing  Appeals to broad spectrum of people (eg. Razor blades) b) Differentiated marketing
More Less
Unlock Document

Only page 1 are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit